Today's Support and Resistance Levels:
S1: 1.5671 R1: 1.5750
S2: 1.5638 R2: 1.5810
S3: 1.5593 R3: 1.5899
Technical Overview:
We saw a slightly lower low one Friday at 1.5569. This was our risk scenario playing out as wave 2 has not finished and the slightly lower low turned wave 2 into a flat correction. Such scenario indicates that we should soon see a break above minor resistance at 1.5810 confirming that wave c of 2 is finished indeed and a new rally in wave 3 has begun. The minimum target for wave 3 is at 1.6506, but we should expect an extension in wave 3, which would call for much higher levels.
However, as long as minor support at 1.5810 has not been broken, we must accept, that there still is a risk for a new decline towards 1.5569, but we do regard this possibility as a very low one.
Trading Recommendation:
You should be long EUR at 1.5620 with a stop at 1.5565. If you are not long EUR already you can buy a break above 1.5810 with at stop at 1.5590.
